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Thursday, November 06, 2014

Uber and Lyft influence Hailo taxi app to leave NYC and the U.S. Market

It has been said often that ridesharing companies are adversely impacting traditional transportation providers. These trendy ridesharing apps make requesting a ride fast and easy. Whenever ridesharing companies and app-based ride services enter new markets, their cheap rides drive out existing transportation services. With exception of city transportation services, ride apps are dominating.

Hailo, a taxi app, has thrown in the towel and is now leaving the United States. Their single largest market, New York City, is about to end operation. According to this taxi app, they cite ride-based app makers Uber and Lyft as their demise in the American taxi market. There is no ideal way to compete against these ride giants; people are joining their transportation movement at record numbers.

Past data revealed on tech websites show us the power of Uber. Lyft is following closely behind, also claiming a valuation in the billion dollar range. Though Uber is squashing the competition, their ride-based app is second rate and needs major improvement.

Too many clients have complained about Uber's ride app's GPS inaccuracies. Clients are pinned at pickup locations much further away. Nonetheless, drivers dislike restrictions of only using the flawed in-app navigation rather than Google Maps and/or Waze. Technical glitches crash the app on busy nights (i.e. Halloween night), making it impossible to give rides until this issue is resolved.

Dropping clients off in poor cell coverage areas prevent thus trips from closing out. No ride filters connect drivers with clients 30-50 minutes away. Promotional hourly guarantees are not being honored like before. God forbid a clients vomits in your ride. You'll be forced to scoop out vomit chunks. But, Uber won't compensate their drivers like Lyft does. Everything is policy-based at Uber, usually putting their drivers at a huge disadvantage.

Drivers can't continue driving until this vomit mess is removed and the interior is disinfected. Uber won't give drivers any credit for shutting down during promotion hourly guarantees. If a driver must invest 2 hours into cleaning vomit on a night Uber is guaranteeing $38, $40 and/or $45 an hour, they lose this time and may get disqualified if they don't meet the trip requirements. Uber will only compensate drivers for direct cleaning expenses. Unless drivers enjoy the smell of foul vomit, it is highly unlikely they will allow this acidic nightmare to soak in and wait to visit a car cleaning company. At Uber, drivers must clean vomit for free. They lose valuable time and money.

Hailo taxi app could have competed against Uber and Lyft. All they need to do is expose ridesharing company disadvantages. It's that easy.

One UberX client claimed they would never take a Lyft again. After being promised to reach their pickup address and discussing this on the phone, a Lyft driver just cancelled the ride without informing the rider. Many ridesharing riders have also mentioned that Lyft drivers get lost, drive toward their direction, and then eventually cancel these trips with no explanations.

UberX drivers have done similar things to clients in the East Bay. One client shared with their UberX driver that he requested a ride and watched his driver go in the wrong direction for several minutes. All of a sudden, this UberX driver canceled this trip without giving a reason. Luckily, a reliable UberX driver showed enough courtesy and respect to pick up this client and drive them home.

Hailo taxi app is a reliable taxi driver tool. There is no reason to leave the U.S. market. What happens when Uber and Lyft dominate the European and Asian transportation market? Good transportation competition requires service providers to make immediate adjustments. Make movies, make changes, make money right now.

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